Health IT

Dell selling consulting biz, including healthcare, to Japan’s NTT

The deal, worth about $3.05 billion, makes Michael Dell’s keynote at HIMSS16 a month ago officially pointless.

As expected, technology heavyweight Dell is unloading its healthcare and health IT consulting business as part of its sale of the former Perot Systems unit to NTT Data. The Japanese company is buying Dell Services for about $3.05 billion, according to various news sources.

NTT disclosed the deal in a regulatory filing early Monday, the New York Times reported. Dell bought Perot Systems in 2009 for $3.9 billion, so it’s taking a substantial loss on this sale. But the Round Rock, Texas-based computer company has to raise cash to finance its pending $67 billion acquisition of EMC, Reuters noted.

NTT Data, a unit of Japanese telecom giant Nippon Telegraph & Telephone Co., has been looking to grow outside its home country. “Perot Systems has a large base of U.S. clients in medical and other markets, so it fits NTT Data’s strategy to increase its presence there,” Hideaki Tanaka, an analyst at Mitsubishi UFJ Morgan Stanley, told Reuters. 

The filing indicated that NTT Data will keep all 28,000 Dell Services employees in North America and India, at least initially, Reuters reported.

Not known is whether the deal includes a towel for Michael Dell to wipe the egg off his face from his rather pointless keynote at HIMSS16 on Feb. 29.

That session will be remembered more for Dell’s questioner, Ascension Health CIO Mark Barner, absolutely embarrassing himself and his organization by saying that he doesn’t care what people say on Twitter about many of the day-to-day elements that form the patient experience. 

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